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Updated on: Sunday, November 07, 2021, 05:50 PM IST

Rajasthan: CM Ashok Gehlot reluctant on reducing VAT on petroleum products; party in dilemma

Rajasthan CM Ashok Gehlot said the State will lose Rs 1,800 crore VAT revenue | Photo: IANS

Rajasthan CM Ashok Gehlot said the State will lose Rs 1,800 crore VAT revenue | Photo: IANS

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Jaipur: Fearing a huge revenue loss, the Rajasthan CM Ashok Gehlot is not ready to reduce the VAT on petroleum products in Rajasthan, while the Congress party is in dilemma on his stand as now Rajasthan is charging the highest VAT on these products and the party has to start a Jan Jagran Abhiyan from November 14 against the central government on the issue of inflation.


Ashok Gehlot has tweeted twice on this issue after the reduction on excise duty by the Central government and in both statements, he sounded reluctant on reducing the VAT on petrol and diesel in the state.


On November 4, he said, "With the reduction in excise duty, the VAT on petrol will reduce by Rs 1.80 per litre on petrol and Rs 2.60 per litre on diesel and the state has to bear the loss of Rs 1800 cores per year. I urge PM to reduce excise duty more to give relief to the common man. We are ready to bear the loss of VAT in the public interest,’


While on November 7, he once again said that the state has to bear a loss of Rs 1800 crores per year as the VAT has automatically reduced with the reduction of excise duty. He further said that the state has reduced the VAT by 2 per cent at the time of Budget this year and bearing a loss of Rs 1000 crores already. So in total, the state will have to bear a loss of Rs 2800 every year.


Gehlot’s statements suggest that he will not reduce the VAT on petroleum products but his stand has put his party in a dilemma. The party has to start a Jan Jagran Abhiyan against the central government on the issue of inflation. This is a pregame given by the central leadership of the party.

"If our government does not reduce the VAT on petrol and diesel, it will be difficult for us to go and face the public as the petroleum products are of the highest prices in the state due to the highest VAT", said a leader on anonymity.


Though it is being said that some senior party leaders have conveyed the concern of the party to CM and officials have been directed to find out the solution to the problem.


It is to note that Rajasthan is charging 26 per cent of VAT on diesel and 36 per cent on petrol which is now the highest in the country as many states have reduced the VAT after the relief given by the central government.

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Published on: Sunday, November 07, 2021, 05:50 PM IST
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